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The president of the compony you work for has asked you to evoluste the proposed acquisidion of a new ehromatogingh for the firmis Rop department.

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The president of the compony you work for has asked you to evoluste the proposed acquisidion of a new ehromatogingh for the firmis Rop department. The ecuiprrent's bosic price is $63,000, and it would cost anothet \$14,000 to modily it for speciel use by your firm. Tho chromatograph, which faliz into the MaCRS. 7-yoar ciass, would be sold after 3 vese for $29,500. The Macit rotes for the first 3 years arn 0.2335,0.4445 and 0.145.1. Use of the efulpment would require an ineresse in nat working capital (spare parts laventory) of 32,950 . The machine would have na effect on revenjes, but it is expected to sove the firm any, thould be inficated or a minus signi Do not round intermediate calculations. Fround your answers to she nearest dollac 3. What is the Year-0 net cash fisw? 6. What are then net cperating cash fions in resm 1,2, and 3 Do not include recayery of NwC or salvage value in rear 3 s talculation hare. Year: 16 C Whot is the sditions canh flew in year 3 from towe and talvage? Year 2: Year 3: $ C. What is the additional cash flow in Year 3 from NWC and salvage? $ d. If the project's cost of capital is 13%, what is the NPV of the project? . $ Should the chromatograph be purchased

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